It's Unlikely That The CEO Of Ion Beam Applications SA (EBR:IBAB) Will See A Huge Pay Rise This Year

Key Insights

• Ion Beam Applications' Annual General Meeting to take place on 12th of June
• CEO Olivier Legrain's total compensation includes salary of €421.9k
• The total compensation is similar to the average for the industry
• Ion Beam Applications' three-year loss to shareholders was 18% while its EPS was down 104% over the past three years

Shareholders of Ion Beam Applications SA (EBR:IBAB) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 12th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out our latest analysis for Ion Beam Applications

How Does Total Compensation For Olivier Legrain Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ion Beam Applications SA has a market capitalization of €402m, and reported total annual CEO compensation of €816k for the year to December 2023. That's a slight decrease of 7.3% on the prior year. We note that the salary of €421.9k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Belgium Medical Equipment industry with market caps ranging from €184m to €736m, we found that the median CEO total compensation was €816k. From this we gather that Olivier Legrain is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€422k	€412k	52%
Other	€394k	€468k	48%
Total Compensation	€816k	€880k	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Although there is a difference in how total compensation is set, Ion Beam Applications more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Ion Beam Applications SA's Growth

Over the last three years, Ion Beam Applications SA has shrunk its earnings per share by 104% per year. Its revenue is up 19% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ion Beam Applications SA Been A Good Investment?

With a three year total loss of 18% for the shareholders, Ion Beam Applications SA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Ion Beam Applications that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.